Fort Collins/Loveland, Colorado Springs, Denver Metro, and Greeley were recently ranked #2, #7, #10 and #20 respectively by Builder Magazine as having the healthiest housing markets. The magazine projects that building permits will nearly double in 2012 over 2011’s.
While the report is focused on the new home market, the analysis applies also to the existing home market.
In a “mid-2011 update” posted on Sept. 15th, the magazine said “A housing recovery is blooming in Denver…. Decent job growth — the metro area is on pace to add 20,000 jobs this year — will contribute to strong income growth of 3.6% next year.” The report predicted a decline in foreclosures, which was confirmed this Monday in a report released by the Colorado Division of Housing. “2011’s median price, $233,100, is only $20,000 below 2006 levels,” continued the posting. It also says that the building of FasTracks is “creating new building opportunities all over town.”
It’s hard not to notice all the building going on around Jeffco and the metro area, not just related to FasTracks, although that project has certainly had an impact on the economy. Over the past two years, KB Homes succeeded in selling out its 60-home Canyon View subdivision in north Golden, at a time when the new home industry was considered stagnant. Richmond American Homes was equally successful during the same time period with its 30-home subdivision nearby.
In downtown Denver, the 42-story Spire skyscraper across from the Convention Center was built during this time and is now nearly sold out of its high-end condos.
A month ago, I reported that about a third of all current MLS listings are under contract. I just searched again and the figure is still over 30%. Although most of my under contract listings have now closed, another listing went under contract Sunday and I’ve been told to expect an acceptable offer on a $500,000 listing shortly.
In short, we are indeed in a healthy housing market now, and the promise of continued low interest rates suggests that it will remain healthy into 2012.